Question 1

There is wide disagreement about the degree to which government should be involved in the economy and for what reasons. Describe the three main competing theories about the proper role of government in the economy: laissez-faire, Keynesian, and monetarism. For each theory, explain what is perceived as the ideal role of government. What are some of the practical problems with each theory?

Accepted Answer

The answer of There is wide disagreement about the degree...

Question 2

Economic policy is often very political. Assess some of the political dynamics at work in the drafting and implementation of economic policies. What have been some of the key American values promoted through economic policy?

Accepted Answer

The answer of Economic policy is often very political. Assess...

Question 3

It would be nearly impossible for the marketplace to run efficiently without some government involvement. Describe some of the different roles that the government plays in the economy. Why is some level of governmental involvement always needed in the economy?

Accepted Answer

The answer of It would be nearly impossible for the...

Question 4

Describe some of the different tools and techniques that the federal government has at its disposal for regulating and effecting economic policy. What are monetary policies? Fiscal policies? What are other ways in which the government can encourage or compel businesses to behave in certain ways?

Accepted Answer

The answer of Describe some of the different tools and...

Question 5

The important monetarist Milton Friedman argued that government regulation is an important way to fine-tune the economy.

Accepted Answer

Milton Friedman believed in a free market economy and was against government regulation, instead advocating for monetary policy as a way to stabilize the economy.

Question 6

Write an essay explaining the different goals of economic policy. How have some of these goals changed over the course of American history? Why do economic policy goals often conflict with each other? Give an example.

Accepted Answer

The answer of Write an essay explaining the different goals...

Quiz 16: Government and the Economy

Economic policy is often very political. Assess some of the political dynamics at work in the drafting and implementation of economic policies. What have been some of the key American values promoted through economic policy?

It would be nearly impossible for the marketplace to run efficiently without some government involvement. Describe some of the different roles that the government plays in the economy. Why is some level of governmental involvement always needed in the economy?

Describe some of the different tools and techniques that the federal government has at its disposal for regulating and effecting economic policy. What are monetary policies? Fiscal policies? What are other ways in which the government can encourage or compel businesses to behave in certain ways?

The important monetarist Milton Friedman argued that government regulation is an important way to fine-tune the economy.

Write an essay explaining the different goals of economic policy. How have some of these goals changed over the course of American history? Why do economic policy goals often conflict with each other? Give an example.